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The Pakistani rupee continued its upward trend for the 17th successive session on Wednesday after the greenback, for the first time in six weeks, fell below the Rs290 mark a day earlier.
According to the State Bank of Pakistan (SBP), the rupee appreciated by 0.36% from yesterday’s close of Rs289.8 as the greenback lost Rs1.05 against the local currency in the interbank market and closed at Rs288.75.
Meanwhile, in the open market, the US dollar fell by one rupee and closed at Rs290. It is pertinent to know that following the government’s nationwide crackdown against the hoarding and smuggling of foreign currencies, the greenback has shed its value by more than Rs18.
Last week, the local unit appreciated another 1.74% and settled at 291.76 against the greenback
However, capital market expert Saad Ali — talking to Geo.tv earlier this week — said that the recent appreciation of the rupee [against US Dollar] was majorly driven by the government’s crackdown against the illegal currency trade and it is unlikely to “sustain for very long”.
Ali also said that he believed that the US dollar “might come down to around Rs285” but is unlikely to fall to Rs250.
The Rs250 figure gained importance after Sindh Governor Kamran Khan Tessori last week, claimed that the market will see a further decline in the dollar rate, adding that the greenback will fall to Rs250-255 against the local unit in the coming days.
Taking to his X —formerly known as Twitter — handle, brokerage house Arif Habib Limited’s (AHL) CEO Shahid Ali Habib said: “PKR gained over 5.3%, or Rs15.3 against USD in the last thirteen consecutive trading sessions due to strict measures against Afghan transit and hawala.”
“We expect PKR to further gain in coming days to at least reach Rs278-280 against USD, if these positive measures continue like this and some external flows materialise timely,” Habib added.
Experts see administrative and enforcement measures behind the recent significant recovery of the rupee’s value against the US dollar.
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